LANSING, Mich. — Michigan’s food and agriculture system has surpassed its economic impact goal of $100 billion, according to an interim estimate by the Michigan State University Product Center.

Chris Peterson, director of the center and the study’s lead investigator, said the state’s agri-food system has reached a total economic impact of $101.2 billion.

"The study includes direct and multiplier effects of numerous aspects of the agri-food system," he noted. "The impact of production agriculture alone is nearly $13.6 billion, or 13.4 percent of the overall total. That is up 24 percent from 2010."

The state’s processing, wholesaling and retailing sector accounts for the remainder, up from $80 billion in 2010 to $87 billion based on the 2013 data, or an increase of about 8.5 percent during the three-year period. "The farm sector’s growth has been outpacing the growth in the other food sectors," Peterson said, adding it remains the smaller portion of the overall estimate.

Gov. Rick Snyder first challenged the agriculture industry to set its sights on topping the $100 billion mark during the August 2011 Summit on Agriculture. Since then, he has consistently encouraged growth in the industry. "Michigan’s food and agriculture businesses have helped lay the foundation for our economic turnaround," Snyder said. "They recognize the value of investing in their communities and creating hometown jobs. Let’s keep this momentum going. The future is exciting for this dynamic industry."

"We are known for crop diversity as well as safe, high-quality products to meet growing global consumer demand. Michigan is well-poised to see increased development in the food and ag arena," said Jamie Clover Adams, director of the Michigan Department of Agriculture and Rural Development (MDARD). "It’s a great time to be in food and agriculture."

Michigan Farm Bureau President Wayne H. Wood said the state’s largest farm group has remained confident the industry would surpass the governor’s challenge.

"This accomplishment spotlights the fact that Michigan agriculture is a consistently strong economic engine," he said. "When Gov. Snyder first challenged us to reach $100 billion, we were already at more than $70 billion. Even at that time, when a lot of other industries were struggling through recession, everyone in agriculture was confident we could meet and exceed that challenge, given the right political environment.

"Now it’s clear that that progress was largely due to Michigan agriculture having the opportunity to thrive without undue impairment. With the recession behind us and a conducive climate in Lansing, there’s no reason to think we can’t maintain that pace – maintain that growth – well into the future."

Data from several sources are used to create the report, and full data sets are only available every five years; thus, a portion of the data are estimated when an interim report is issued, according to Peterson. The study was first conducted in 2006 using 2004 data, when the food and agriculture system was determined to be valued at $60.1 billion. An interim estimate in 2009 showed an increase in value to $71.3 billion. In 2012, the study highlighted more growth, topping $91.4 billion. The newest interim estimate illustrates the sector’s growth trend.

Strong demand for food has added to this, Peterson believes. "There have been strong farm-level food prices and demand for food globally has been very strong. So, food prices have moved ahead aggressively and ultimately, that’s good news for the farm sector as well," he said.